Valeo has announced a joint venture for the production of alternators and starter motors with N.K. Minda Group, a manufacturer of automotive systems in India.

The new company, called Valeo Minda Electrical Systems India Private Limited, will be 66.7 percent owned by Valeo and 33.3 percent owned by Minda.

Located in Pune near Mumbai, the joint venture will develop, produce and sell Valeo Electrical Systems products, including alternators and starter motors for passenger cars.

The total market for these products in India is currently estimated to be around 1.5 million units per year and is growing at an annual rate of around 9 percent.

The joint venture targets more than $68 million in sales as of 2010. Earlier this year, Valeo announced the creation of a 50/50 joint venture with A.K. Minda Group, to develop, produce and sell Valeo Security Systems products in Pune.

The Group also operates two other joint ventures in Chennai for the production of clutches and friction materials.

Thierry Morin, Valeo chairman and CEO, said, "This is the second joint venture we have created in India this year. Expanding our presence in India demonstrates our belief in the growth potential of this market and our willingness to support a fast-developing local automotive industry."